Until late 2007, the passenger car registration tax was linked to the cylinder capacity of the vehicle. From 1st January 2008, Law 34/2007 on Air Quality and the Protection of Atmosphere establishes a new calculation method for the registration tax of passenger cars in Spain, linked to car CO2 emissions/fuel consumption. For this purpose, the Ministry of the Environment led an inter-ministerial working group with the participation of the Ministries of Industry, Development, Consumption and the IDAE, where the specifications of this new registration tax were studied and defined. A new rating for the vehicle registration tax will vary according to the cars CO2 emissions, with the least polluting vehicle being the least taxed. The new tax rates are as follows: - 0% on the vehicle market price for vehicles with emissions under or up to 120 gCO2/km. - 4.75% for vehicles with emissions over 120 and up to 160 gCO2/km. - 9.75% for vehicles with emissions over or equal to 160 and up to 200 gCO2/km. - 14.75% for vehicles with emissions over or equal to 200 gCO2/km. In December 2008, the new tax scheme was extended to two-wheeled vehicles such as motorcycles. The tax rates are as follows: - 0% on the vehicle market price for those with emissions under 80gCO2/km - 4.75% for vehicles with emissions over or equal to 80 and up to 100 gCO2/km - 9.75% for vehicles with emissions over or equal to 100 and up to 120 gCO2/km - 14.75% for vehicles with emissions over or equal to 120 gCO2/km, or those with over 100 horsepower (74kW).

Climate Change Description:

Until late 2007, the passenger car registration tax was linked to the cylinder capacity of the vehicle. From 1st January 2008, Law 34/2007 on Air Quality and the Protection of Atmosphere establishes a new calculation method for the registration tax of passenger cars in Spain, linked to car CO2 emissions/fuel consumption. For this purpose, the Ministry of the Environment led an inter-ministerial working group with the participation of the Ministries of Industry, Development, Consumption and the IDAE, where the specifications of this new registration tax were studied and defined. A new rating for the vehicle registration tax will vary according to the cars CO2 emissions, with the least polluting vehicle being the least taxed. The new tax rates are as follows: - 0% on the vehicle market price for vehicles with emissions under or up to 120 gCO2/km. - 4.75% for vehicles with emissions over 120 and up to 160 gCO2/km. - 9.75% for vehicles with emissions over or equal to 160 and up to 200 gCO2/km. - 14.75% for vehicles with emissions over or equal to 200 gCO2/km. In December 2008, the new tax scheme was extended to two-wheeled vehicles such as motorcycles. The tax rates are as follows: - 0% on the vehicle market price for those with emissions under 80gCO2/km - 4.75% for vehicles with emissions over or equal to 80 and up to 100 gCO2/km - 9.75% for vehicles with emissions over or equal to 100 and up to 120 gCO2/km - 14.75% for vehicles with emissions over or equal to 120 gCO2/km, or those with over 100 horsepower (74kW).